The IMF Board of Directors decided to remove Western Hemisphere director Rodrigo Valdés from negotiations with Argentina. The manager was accused by the president, Javier Milei, of not wanting “what’s good for Argentina.” He will be replaced by Luis Cubeddu and Ashvin Ahuja.
“To best support constructive engagement with the Argentine authorities, Western Hemisphere Department Director Rodrigo Valdés has fully delegated program negotiations to Luis Cubeddu, the deputyDirector of the Western Hemisphere Department and Ashvin Ahuja, Head of Mission for Argentina, whose work is being supervised by the authorities of the Fund” advertisement Julie KozackDirector of Communications at the International Monetary Fund, during a conference held this Thursday in Washington.
In this way, the harsh criticism formulated by President Javier Milei against Valdés – he accused him of having “bad intentions towards Argentina” – had an echo in the multilateral organization.
It is worth remembering that, in radio statements, the president said at the end of July: “I am convinced that this person (Valdés) does not want the best for Argentina”and accused him of following a political agenda contrary to that of the libertarian leader. The head of State indicated that this official “was absolutely considerate” with the government of Alberto Fernández and instead “every day he is putting buts” to his administration that is “an example of fiscal effort never seen in the history of humanity.”
Despite Milei’s criticism, At the time, Valdés was supported by the board of the Fund. and by the managing director Kristalina Georgieva.
However, the IMF could not ignore the president’s harsh accusations and decided – in an unusual decision – to remove the person in charge of dealing with Argentina, the organization’s largest debtor. In this way, Valdés is in charge of the entire American hemisphere, except Argentina.
Veto of pension reform
Another important support that the national government received from the Fund was its backing of the pension policy, after having maintained the veto. Kozack said “we take note of the recent developments in Congress and We continue to emphasize the importance of achieving fiscal objectives to support a reduction in inflation and improve overall political credibility.”
He added that “in this context, we agree with the government’s objectives of strengthening the overall sustainability of the pension system while protecting the real value of the pension system, especially for lower-income retirees.”
YPF trial
Asked about the trial regarding YPF taking place in the United States, the spokeswoman refused to make any statements, saying that “The Fund does not comment on legal disputes involving our member countries.”
Recovery of the Argentine economy
In response to a query Scope, He recalled that “since the successful conclusion of the eighth review of the Extended Facilities Programme, the Argentine authorities have continued to implement the programme.”
He stated that “Data through mid-2024 suggest that fiscal and reserve targets have been met and that the authorities continue to address the long-standing imbalances facing the country”.
He considered that “The implementation of the programme has resulted in a considerable reduction in inflation and there are signs of an incipient recovery in economic activity and real wages”.
Regarding the start of talks on a new program, Kozack did not provide details and merely noted that “IMF staff is working closely with the Argentine authorities. Technical discussions are underway in the context of the current Extended Facilities program and more information will be provided when available.”
Source: Ambito
